UnitedHealth drops thousands of doctors from insurance plans: WSJ

Fri Nov 15, 2013 10:00pm EST

(Reuters) - UnitedHealth Group (UNH.N) dropped thousands of doctors from its networks in recent weeks, leaving many elderly patients unsure whether they need to switch plans to continue seeing their doctors, the Wall Street Journal reported on Friday.

The insurer said in October that underfunding of Medicare Advantage plans for the elderly could not be fully offset by the company's other healthcare business. The company also reported spending more healthcare premiums on medical claims in the third quarter, due mainly to government cuts to payments for Medicare Advantage services.

The Journal report said that doctors in at least 10 states were notified of being laid off the plans, some citing "significant changes and pressures in the healthcare environment." According to the notices, the terminations can be appealed within 30 days.

Tyler Mason, a UnitedHealth spokesperson, was not immediately available for comment when reached by Reuters.

The insurer told the WSJ that its provider networks were always changing and that it expected its Medicare Advantage network to be 85 percent to 90 percent of its current size by the end of 2014.

UnitedHealth is participating in about a dozen new state insurance markets that launched on October 1 to offer subsidized health coverage under President Barack Obama's healthcare overhaul.

The insurer said previously it planned to withdraw from some markets in 2014 because of the government funding cuts.

Another top health insurer, Aetna Inc (AET.N), also warned in October that it expected slowing growth in 2014 in its Medicare Advantage plans.

(Reporting by Zeba Siddiqui in Bangalore; Editing by Peter Cooney)

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Comments (4)
AZreb wrote:
More “unintended consequences” and “collateral damage”? Hard enough for Medicare patients to find physicians now who will accept them and this makes it much worse.

Nov 16, 2013 8:46am EST  --  Report as abuse
Adam_S wrote:

Nov 19, 2013 6:11pm EST  --  Report as abuse
jmad34 wrote:
The dirty secret of Medicare Advantage is that it is a private alternative to Medicare. It is not medicare. It also costs the Gov. more than the regular system. The plans have far more restrictions on providers and servers.
If the users choose to join regular medicare, they pay a penalty. The providers can change the deal annually, the list goes on.
Medicare Advantage is a bad deal

Nov 20, 2013 11:37am EST  --  Report as abuse
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